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SALIENT  FACTS  ABOUT  CHINA. 

By  Commercial  Attaclie  Julean  Arnold. 

1.  The  area  of  China  (4,376,000  square  miles)  is 
greater  than  that  of  Europe  or  the  United  States. 
In  latitude  Harbin  corresponds  with  Minneapolis, 
Peking  with  Philadelphia,  Shanghai  with  Mobile, 
and  Canton  \\'ith  Habana. 

2.  The  population  of  China  (estimated  at  400,- 
000,000)  is  almost  equivalent  to  that  of  all  Europe, 
nearly  four  times  that  of  the  United  States,  and 
seven  times  that  of  South  America.  Asia  possesses 
51  per  cent  of  the  world’s  population.  Six-sevenths 
of  China’s  population  lives  in  one-third  of  its  area, 
while  vast  regions  rich  in  natural  resources  await 
railways  to  open  them  to  settlement  and  devel- 
opment. 

3.  Railways  are  the  greatest  need  of  China, 
which  has  only  6,500  miles  compared  with  our 
265,000  miles.  Most  of  China’s  big  problems  will 
be  solved  with  the  development  of  needed  rail- 
ways under  conditions  favorable  to  the  Chinese 
people. 

4.  Agriculture  occupies  85  per  cent  of  the  people. 
No  modem  implements  are  used.  Farms  average 
about  1 acre.  In  the  south  the  principal  crops  are 
rice,  sweet  potatoes,  sugar,  cotton,  mulberrj’,  and 
vegetables;  in  the  no.rth,  wheat,  sorg’num,  millet, 
com,  cotton,  sweet  potatoes,  and  vegetables.  Tens 
of  millions  of  people  in  China  eat  no  rice,  but  sub- 
sist on  other  cereals. 

5.  As  regards  natural  resources,  China  is  rich  in 
coal  and  basic  metals,  in  vegetable  and  animal 
products.  Another  great  asset  is  the  vast,  in- 
dustrious, homogeneous  population. 

6.  The  Chinese  character  resembles  the  American 
in  certain  essential  aspects.  There  is  no  caste;  the 
people  are  democratic,  peaceful,  industrious, 
possess  a sense  of  humor  and  a strong  sense  of 
justice,  are  reasonable,  and  inherit  a culture  based 
on  4,000  years  of  civilization. 

7.  The  conservatism  of  the  Chinese  in  the  past 
was  due  to  their  naturally  secluded  position  and  to 
an  educational  system  recognizing  only  teachings 
of  ancient  sages  and  taking  no  cognizance  of  mod- 
ern science. 


160042°— 29 


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8.  The  new  China  looks  to  the  future  and  away 
from  the  past,  is  instituting  modem  schools  and  a 
native  i)ress,  is  developing  an  effective  national 
spirit,  and  asks  the  constmctive  sympathy  of  the 
outside  world. 

9.  Modern  industrialism  is  rapidly  developing  in 
China.  The  people  are  now  receptive  to  all  that 
the  West  has  to  teach.  They  have  no  old  ma- 
chinery or  plants  to  scrap,  \’irtually  beginning  to- 
day on  the  same  basis  as  the  West. 

10.  Cities  of  China  under  the  new  order  will  need 
to  be  rebuilt  to  meet  demands  of  the  new  industrial 
era.  Already  millions  of  dollars  are  being  spent  on 
modem  business  and  residence  buildings  in  trade 
centers  of  China. 

11.  There  are  no  roads  or  wheeled  vehicles,  ex- 
cept wheelbarrows,  in  South  China,  with  a popu- 
lation of  about  200,000,000.  The  people  now 
recognize  the  need  for  tens  of  thousands  of  miles 
of  good  roads. 

12.  The  present  purchasing  power  of  the  natives 
is  generally  low,  though  there  are  many  wealthy 
families  and  much  money  that,  with  proper  en- 
couragement, would  go  a long  way  toward  financing 
the  needs  of  the  new  China.  Chinese  capital  is 
now  earning  25  per  cent  dividends  in  modem 
cotton  mills  in  Shanghai,  Hankow,  and  Tientsin. 

13.  An  increased  purchasing  power  of  the  masses 
will  result  from  development  of  railways,  mines, 
modem  industrialism,  and  modem  commerce,  in- 
creasing the  people’s  wants  and  raising  their 
standard  of  living. 

14.  China’s  national  debt  is  about  one  billion 
dollars  gold,  an  inconsiderable  amount  when 
viewed  in  the  light  of  the  country’s  natural  re- 
sources and  population.  China  has  never  re- 
pudiated any  of  its  foreign  obligations,  and  foreign 
interests  have  always  been  indemnified  for  losses 
due  to  rebellions,  riots,  or  other  disturbances. 

15.  Chinese  securities  must  find  a market  in 
America.  Trade  follows  the  loan.  We  should 
make  loans  to  those  who  can  give  us  trade,  and 
none  offer  greater  possibilities  than  the  Chinese. 

16.  International  cooperation  in  financing  China 
should  be  encouraged,  as  there  is  room  for  all  and 
all  will  profit  through  harmonious,  coordinated 
elfort. 


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17.  China  suffers  from  no  inflated  curventy  oT 
credits.  The  Chinese  silver  dollar  to-day  ex- 
changes for  $1.10  United  States  gold,  whereas 
four  years  ago  it  exchanged  for  $0.43. 

18.  China’s  foreign  trade  has  increased  five-fold 
in  30  years.  l\Tien  the  per  capita  foreign  trade  is 
equivalent  to  that  of  Australasia,  the  total  will 
be  $65,000,000,000  as  compared  with  the  present 
$1,000,000,000. 

19.  The  -principal  exports  are  silk,  beans,  tea, 
vegetable  oils,  hides  and  skins,  wool,  tallow, 
minerals,  eggs  and  egg  products,  wood  oil,  short- 
staple  cotton,,  and  bristles.  The  United  States  is 
the  principal  buyer. 

20.  The  principal  imports  are  cotton  goods  and 
cotton,  metal  and  metal  products  (including  de- 
fectives and  scrap),  machinery,  electrical  equip- 
ment, railway  materials,  kerosene,  lumber,  sugar, 
marine  products,  dyes,  tobacco,  matches,  leather, 
hardware  and  building  materials,  motors,  and 
notions.  The  United  States  ranks  second  in 
supplying  China’s  imports. 

21.  China’s  import  tariff  is  a uniform  5 per  cent, 
with  2^  per  cent  added  for  admission  to  non- 
treaty ports.  Shanghai  market  values  form  the 
basis  for  assessment  of  duties.  The  tariff  can  not 
be  altered  except  by  international  agreement. 

22.  There  are  about  6,500  American  residents  in 
China,  about  one-half  comprising  the  missionary 
population,  spending  about  $12,000,000  annually 
in  educational,  medical,  and  evangelistic  work 
helpful  to  American  interests  generally.  There 
are  about  2,000  Americans,  with  150  American 
firms,  at  Shanghai,  through  which  port  60  per 
cent  of  China’s  foreign  trade  passes. 

23.  Americans  in  China  are  under  the  jurisdic- 
tion and  protection  of  American  courts.  More 
American  business  organizations  are  needed  in 
China. 

24.  The  American  Chamber  of  Commerce  of  China 
at  Shanghai,  with  a paid  secretary,  aims  to  aid 
Americans  seeking  to  extend  business  relations 
with  China. 

25.  The  American  post  office  at  Shanghai  receives 
and  sends  mail,  parcels,  and  money  orders  at 
United  States  domestic  rates. 


26.  Four  American  banks,  including  a Chinese* 
American  bank,  have  organizations  in  China. 

27.  The  one  cable  between  the  United  States 
and  China  is  inadequate  to  our  needs.  Wireless 
facilities  for  commercial  and  news  service  are 
urgently  needed. 

28.  Ships  are  the  water  extensions  of  railways. 
American  trade  with  China  during  the  past  five 
years  suffered  greatly  becau.se  of  inadequate  ship- 
ping facilities  under  the  American  flag.  Fast  pas- 
senger and  freight  services  under  the  American 
flag  must  be  maintained  to  meet  our  trade  needs 
in  China. 

29.  Pictorial  trade-marks  are  preferable.  It  is 
necessary  to  safeguard  trade-marks  against  imita- 
tion on  the  part  of  cheap,  inferior  products.  Regis- 
tration in  both  China  and  Japan  is  advisable. 

30.  Catalogues  in  English  are  useful  only  to  a 
limited  degree.  The  man  behind  the  catalogue 
sells  the  goods. 

31.  Advertising  is  necessary  to  the  introduction 
of  goods.  It  should  preferably  be  in  Chinese. 
Money  should  be  allotted  but  should  not  go  toward 
support  of  publications  unfriendly  to  American 
interests. 

32.  Quality  in  goods  is  understood  by  the  Chinese, 
and  American  goods  are  generally  reputed  of  high 
quality. 

33.  The  Chinese  business  man  is  a heavy  buyer, 
respects  his  obligations,  is  guided  by  dictates  of 
equity  rather  than  law,  is  not  accustomed  to  pro- 
vide letter  of  credit  with  order,  does  his  business 
over  the  teacup  rather  than  over  the  telephone, 
and  is  particularly  friendly  toward  Americans  and 
things  American. 

34.  The  Chinese  language  is  becoming  increas- 
ingly important  to  the  foreign  business  man  in 
China.  Three-fifths  of  the  people  of  China  speak 
the  Mandarin  dialect. 

35.  Chinese  students  should  be  encomaged  to  take 
practical  cmnses  in  engineering  and  commerce  in 
the  United  States.  American  manufacturers 
should  equip  Chinese  technical  and  engineering 
schools  with  machinery,  etc.,  to  help  to  establidi 
American  standards  and  materials. 

36.  Chinese  and  American  merchants  should  be 
encouraged,  respectively,  to  visit  the  country  of 
the  other. 


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S7.  Americans  visiting  China  should  see  Canton, 
Shanghai,  Hankow,  Peking,  and  Tientsin  and 
should  meet  prominent  Cninese  business  men  in 
tiiose  centers. 

38.  Federal  incorporation,  with  home  tax  exemp- 
tiop,  is  essential  to  the  success  of  American  firms 
in  China  in  their  competition  against  firms  of  other 
nationalities  enjojdng  similar  aovantages.  Com- 
bination under  the  Wcbh-Pomerene  Act  is  advanta- 
geous lor  American  manufacturers  in  China. 

39.  Americans  possess  a great  asset  in  the  good 
will  of  the  Chinese  people;  hence  joint  Chinese- 
American  enterprises  can  advantageously  be  or- 
ganized. 

40.  In  forming  China  connections,  American  man- 
ufacturers should  limit  agency  rights  to  territory 
effectively  coverea  by  agent.  For  trade  purposes 
China  may  be  divided  into  North,  Central,  and 
South  China,  witn  centers  at  Tientsin,  Shanghai, 
and  Canton,  respectively.  Manufacturers  should 
send  their  own  representatives  for  periodic  visits 
to  the  coimtry  to  inspect  the  work  of  agents;  if 
possible,  they  should  nave  tneir  own  expert  always 
in  the  field. 

41.  Agents  of  American  manufacturers  should  not 
be  permitted  to  exact  prices  netting  excessive 
profits,  as  future  trade  is  imperiled  thereby. 

42.  The  personnel  of  American  firms  in  China  is 
important.  Men  of  good  character,  education,  and 
training  shoulu  be  selected  and  encouraged  to 
remain  in  China  and  study  the  Chinese  language. 

43.  American  merchandizing  and  salesmanship 
methods  will  be  signally  successful  in  China  if 
adjusted  to  meet  conaitions  there. 

44.  China  is  a market  of  great  potentialiiies,  the 
new  world  of  opportunity  in  trade;  hence  it  pays 
to  “get  in  on  the  grouna  floor”  and  build  on  a 
solid  foundation , liberally  supporting  an  organiza- 
tion doing  the  pioneering  work. 

45.  Because  of  geographical  position,  the  United 
States  would  natiually  seem  concerned  with  Asia 
more  than  with  Europe.  Alaska  is  within  50  miles 
of  Siberia,  and  Manila,  in  an  American  insular 
possession,  is  closer  to  China  than  is  Tokyo. 
Manila  can  advantageously  be  made  an  American 
distributing  center  for  our  Far  Eastern  trade. 


FAR  EASTERN  DIVISION  OF  BUREAU. 

F.  R.  Eldriage,  Jr.,  Ciller. 

The  Bureau  of  Foreign  and  Domestic  Commerce 
has  recently  given  increased  attention  to  the  devel- 
opment of  American  trade  in  the  Far  East  by  the 
establishment  of  a Far  Eastern  Di\ision.  Besides 
maintaining  permanent  commercial  attaches  in 
Peking  and  Tokyo,  who  interpret  general  commer- 
cial and  economic  conditions  in  the  Far  East  as 
they  affect  American  interests,  the  Bureau  has  had 
a number  of  trade  commissioners  investigating 
special  subjects  in  China,  Japan,  India,  the  Philip- 
pine Islands,  the  Dutch  East  Indies,  and  else- 
where. The  investigations  of  the  latter  include 
general  trade  conditions,  ports  and  transportation 
facilities,  investment  opportunities,  mineral  re- 
sources and  their  development,  and  the  markets 
for  motor  vehicles,  hardware,  electrical  goods,  rail- 
road equipment,  cotton  goods,  etc. 

Inquiries  from  any  American  manufacturer  or 
exporter  desiring  to  increase  his  trade  with  the  Far 
East  or  to  establish  new  connections  there  are 
answered  without  charge.  Several  of  the  mem- 
bers of  the  Bureau’s  staff  in  Washington  have  spent 
considerable  time  in  the  Far  East  and  have  made  a 
careful  study  of  the  field.  Requests  for  informa- 
tion regarding  commercial  opportunities  in  that 
part  of  the  world  are  thus  receiving  specialized 
attention.  This  service  has  grown  to  meet  the 
demands  made  upon  it. 

Current  information  regarding  the  Far  East  re- 
ceived through  the  Diplomatic  and  Consular  Ser- 
vice of  the  State  Department  and  from  the  commer- 
cial attaches  and  trade  commissioners  of  the  Bureau 
is  published  in  the  daily  “Commerce  Reports.” 
Most  of  the  detailed  information  obtained  by  the 
trade  commissioners,  however,  is  embodied  in 
monographs  reporting  the  results  of  their  investiga- 
tions in  a particular  country. 

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